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Wu sues feds over $48M in withheld funding to fight homelessness in Boston

Wu sues feds over $48M in withheld funding to fight homelessness in Boston

BOSTON — Boston Mayor Michelle Wu announced Monday that she is suing the federal government regarding its withholding of more than $48 million in previously-awarded funding to fight homelessness in the city.

Wu, in a statement on Monday, called the federal government’s move to withhold the funding unless Boston complies with President Donald Trump’s executive orders “unlawful.”

Boston joins seven other jurisdictions in filing the lawsuit in the federal Western District of Washington, including King County, Washington; the city of New York, NY; the city of Columbus, Ohio; the city and county of San Francisco, California and Pierce County and Snohomish County in Washington.

“The Trump Administration is threatening to hold up nearly $48 million for Boston to tackle homelessness unless our City complies with unconstitutional Executive Orders,” Wu said. “We are joining other cities and counties across the country to protect critical funding to prevent homelessness and house families in need. Boston will not back down on making our city a home for everyone.”

Boston’s lawsuit comes as city officials have been at odds with federal officials over Boston’s so-called sanctuary city policies.

In March, Border czar Tom Homan said he is fed up with Boston and other Massachusetts communities not complying with federal authorities who are trying to apprehend hard criminals who are in the country illegally. Homan traveled to Boston to oversee a federal law enforcement operation over several days.

President Donald Trump and other federal officials have repeatedly reminded recipients of federal funding that they are expected to follow federal law, including on immigration enforcement, or face potential consequences.

On March 5, Wu was among four Democratic mayors grilled by lawmakers on Capitol Hill regarding so-called sanctuary city policies during a congressional hearing that turned heated at times.

To prepare for that Congressional hearing, Wu racked up a six-figure legal bill of “up to $650,000” when she hired the services of Cahill Gordon & Reindel, a New York City-based law firm at a rate of $950 an hour, city officials said at the time.

At one point during the March 5 hearing, Congressman Byron Donalds, a Florida Republican, asked Wu how much the city spends on services for illegal immigrants.

“We don’t ask about immigration status,” Wu replied during the hearing.

“You don’t ask about how much money the City of Boston has spent on illegal immigration? Are you out of your mind? Do you manage your budget or not, Mayor Wu?” Donalds asked.

“I manage my budget. I have a AAA bond rating,” Wu said during the hearing.

Wu then said, “The City of Boston is sick of having people outside of Boston telling us what to do.”

In her statement announcing Boston’s lawsuit on Monday, Wu said the federal government’s actions “threaten billions in funding from the U.S. Department of Housing and Urban Development’s Continuum of Care program, the single largest source of federal funding Boston and other cities use to address homelessness.”

“This lawsuit seeks to defend the City from executive overreach and many unlawful and arbitrary conditions being added to the CoC program,” Wu said in her statement.

The Continuum of Care program supports homeless persons and formerly homeless Boston residents with finding stable housing connected to health care, counseling, and other supportive services, Wu said.

The City of Boston works with local nonprofit organizations to help more than 2,000 households experiencing homelessness each year. This includes families, young adults, and veterans, Wu said.

"The new requirements from the federal government would force Boston and other cities to make legal promises that conflict with local laws, values, and long-standing efforts to support residents and connect them with stable housing,“ Wu said.

“These include conditions related to immigration enforcement, health care, DEI, and how cities support transgender and gender-diverse individuals,” Wu said in her statement. “If Boston agreed to these terms and was later found to be out of compliance based on this federal administration’s unfounded and unsupported interpretation of the laws, the City could be forced to pay back all the grant money—up to three times the original amount—leaving thousands of residents without housing support and putting the City in an unnecessary position financially."

Each year, the Continuum of Care program funds services in Boston such as permanent supportive housing for people with disabilities, “rapid re-housing for those exiting homelessness, and transitional housing for survivors of domestic violence and others in crisis,” Wu said.

More than 18 nonprofit organizations receive this federal funding annually, including Metro Housing | Boston, Pine Street Inn, HomeStart, and Casa Myrna, city officials said. These groups employ more than 125 people with this support.

“We cannot allow the federal government to abdicate our collective responsibility to provide housing for our homeless and neediest residents, including veterans and those struggling with mental health issues,” Boston City Council President Ruthzee Louijeune said in a statement. “Boston will continue to fight for critical funding to care for our residents and will protect their basic rights.”

Wu is seeking reelection as mayor this fall, and she will have to contend with at least one challenger: Josh Kraft, the son of a wealthy family who has worked for decades in the city’s community service and philanthropic circles.

This is a developing story. Check back for updates as more information becomes available.

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